Bitcoin payment processor and cryptocurrency infrastructure provider OpenNode announced Tuesday that it will test a bitcoin payment processing and payouts solution via the Central Bank of Bahrain’s regulatory sandbox.
The CBB’s Regulatory Sandbox Framework allows FinTech firms to test and experiment their ideas and solutions related to the sector in a more efficient and effective environment. The initiative was launched last year as part of the island nation’s efforts to enhance the competitiveness of its financial services sector and transition towards a diverse and digital economy.
OpenNode is working on a series of projects including a digital wallet, along with extensions of that wallet with an account linked debit card, as well as the ability to settle in a range of global currencies.
In its efforts to expand globally, OpenNode is also collaborating with several governments in Latin America, Europe and other emerging areas. Within this context, it intends to provide the infrastructure to help Bahrain grow its economy and will showcase why Bitcoin is synonymous with better business.
Since its creation four years ago, OpenNode has been focused on providing bitcoin payment acceptance and payout solutions for businesses, platforms, and people globally.
“This is a watershed moment for the people of Bahrain, the Middle East and the Bitcoin economy as a whole. OpenNode’s leading Bitcoin infrastructure solution continues to pave the way for countries, governments and reputable financial institutions to adopt the Bitcoin standard and transact on the lightning network,” says Afnan Rahman, CEO and Co-Founder at OpenNode.
Commenting on this announcement, Dalal Buhejji, Executive Director – Investment Development for Financial Services at the Bahrain Economic Development Board said, “We are proud to have worked with the Central Bank towards establishing a strong financial services ecosystem within the Kingdom of Bahrain. As a country, we have always been ahead of the curve in adopting Fintech solutions thanks to our regulator’s flexibility and forward thinking.
Earlier in this year, the Central Bank of Bahrain (CBB) has granted Binance its Category 4 license as a fully-fledged crypto-asset service provider (CASP).
The world’s largest cryptocurrency exchange received the licence after reportedly meeting all of the operational, technical, and security requirements outlined by the CBB.
Binance Bahrain was the first exchange to be granted a category 4 license. The milestone came nearly three months after Binance secured its preliminary authorization to establish a crypto-asset business, paving the way for it to begin operations within the country.
Before that, it was granted an “in-principle” decision, which was the first stage of the full authorization process whereby the applicant needs to satisfy the CBB on one or more requirements in order to obtain a license. The upgraded license allows the world’s biggest crypto ecosystem to offer a full-suite of crypto exchange services in Bahrain.